Public Bank has released its first quarter result for 2023, with the banking group recording pre-tax profit growth of 10.4% to RM2.21 billion, as compared with the corresponding quarter in 2022. Net profit grew at a higher rate of 22.6% to RM1.71 billion during the same period, due to the prosperity tax imposed in the previous corresponding period.
Tan Sri Dato’ Sri Dr. Tay Ah Lek, Managing Director and Chief Executive Officer of Public Bank commented, “The Public Bank Group continued to navigate through the challenges in the evolving operating environment and demonstrated resilience in its first quarter 2023 performance, which was mainly supported by commendable net interest income growth and lower loan impairment allowances.” Net interest income increased by 7.4%, mainly led by healthy loans and deposits growth which expanded at an annualised growth rate of 5.0% and 9.1% respectively. Coupled with lower impairment allowances during
the quarter, the Group sustained a resilient net return on equity of 13.6%.
Despite high inflationary pressure, the increase in operating expenses was well under control at 4.7%, underpinned by the Group’s prudent cost management. As a result, the Group continued to achieve an efficient cost-to-income ratio of 33.1% in the first quarter of 2023. Asset quality remained stable with a low gross impaired loans ratio of 0.5%. Loan impairment allowances were lower by 98.5% to RM1.5 million from RM99.7 million in the corresponding quarter of 2022.
Loans and Deposits Businesses
During the first quarter ended March 2023, the Public Bank Group maintained a healthy loan growth momentum at an annualised growth rate of 5.0% to RM381.6 billion, largely supported by the domestic loan portfolios which grew by an annualised rate of 5.4% to RM356.8 billion. Domestic loan growth was mainly contributed by residential properties
financing, hire purchase financing as well as SME financing, which grew at an annualised rate of 6.1%, 11.5% and 2.7% respectively. This has sustained the Group’s leading market share in the residential properties financing, hire purchase financing and domestic SME lending, which stood at 20.6%, 30.4% and 19.0% respectively.
As at the The heightened volatility in the financial markets and rising concerns
about the health of banking sectors across the United States and Europe
raise question on the potential risk of contagion effects. This is likely to
further exert downward pressure on the world economy which is already
bracing for a challenging 2023 due to elevated inflation, tightening
financial conditions and geopolitical tensions. Malaysia as an open
economy, will continue to face these headwinds.
